Procedure for returning the documents by the bank.
S.Krishna Prasad
(Querist) 28 April 2016
This query is : Resolved
Sir, my brother-in-law taken a loan of Rs. 5.40 lakhs from the bank for purchase of flat for which I am the guarantor. After his sudden demise, I have cleared the entire balance loan of about Rs. 5.00 lakhs taken by him on the advice of the bank. His wife is divorced and they got one child, their whereabouts are not known to us. Now the bank is not returning the documents to me as a guarantor nor to the decease mother as a legal heir who is staying with us without any financial support. The title deed is not mortgaged to the bank at the time of taking the loan. Please kindly clarify me according to the law will the bank has got any responsibility to hand over the documents to the guarantor ( that is me) and if not how the guarantor will recover the money from the bank.
Thanking you, Sir,
Krishna Prasad
Rajendra K Goyal
(Expert) 29 April 2016
If the Guarantor has cleared the loan of the Bank, after demand from the Bank, he enters in the shoes of the lender and is entitled to recover from the assets / mortgaged property. you should try to claim title deeds on this behalf.
You may write to Bank as guarantor along with mother to return the title deeds. Enclose copy of death certificate and divorce orders and confirm that the share of minor would not be effected.
RAJU O.F.,
(Expert) 29 April 2016
As you have closed the loan, due to the liability of the guarantor, you can claim the title documents and can invoke your right under subrogation
Dr J C Vashista
(Expert) 01 May 2016
Issue notice to Bank as well as LRs (including mother) of the principal borrower for title documents qua property mortgaged and refund of the amount paid by you on behalf of deceased.
T. Kalaiselvan, Advocate 
(Expert) 06 May 2016
I agree with the opinions of experts above.You may follow the suggestions made.
